Consumer Fraud Lawsuit Filed Against Major Banks

A class-action consumer fraud lawsuit was filed against Citibank NA and Discover Bank claiming the companies deceived student loan borrowers into thinking that the interest rates on their loans had been lowered, when the customers were actually paying lower principle amounts.

Justin A. Kuehn initiated the class action federal court in New York after he traced the manipulated billing to a number of large payments he made to try and decrease the principle amount of his student loan, according to Law360 (subscription required). He says that when he asked Citibank to explain what happened with his loan, they sent a “false explanation.”

The explanation notice “masks from borrowers the true reason for the drop in the monthlypayment amount — a massive decline in the amount of the loan’s principal being repaid each month,” states the consumer fraud lawsuit.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law for a free legal consultation and to find out if you have grounds to pursue a consumer fraud lawsuit. Call us today at (877) 490-6520.